COVID-19 Loan Beneficiaries Accuse NIRSAL Microfinance Bank of Unauthorised Deductions

Several beneficiaries of the Central Bank of Nigeria’s COVID-19 loan scheme have accused NIRSAL Microfinance Bank of making unauthorised and excessive deductions from their bank accounts without prior notice.

The loan programme, introduced in 2020 to support small businesses and households affected by the pandemic, was disbursed through NIRSAL as part of a federal stimulus initiative. However, five years later, many beneficiaries say the repayment process has turned into a financial nightmare.

According to multiple complaints shared on social media, NIRSAL has allegedly been withdrawing lump sums — sometimes exceeding the initial loan amount — from customers’ accounts, contrary to earlier assurances that repayments would be made gradually.

One affected beneficiary, Inyali Peter, claimed the bank has deducted nearly ₦874,000 from his accounts since 2024, despite receiving only ₦370,000 under the loan programme.

“I was given ₦370,000, and since the moratorium expired, NIRSAL has been deducting money from my account,” Peter wrote on X (formerly Twitter). “They stopped last year but resumed this month with deductions of ₦338,000 and ₦336,000 within two days. How can nearly ₦1 million be deducted for a ₦400,000 loan?”

Another user, Michael Uche, accused the bank of failing to update his repayment status, which led to continued withdrawals even after he had fully repaid his loan. “You have been deducting money from my accounts without updating my statement on your site. Despite several calls and emails, no response,” he said.

Similarly, a Facebook user, Ajiri Atonuje, alleged that the bank withdrew ₦660,000 from his account for what he believed was a COVID-19 grant, not a loan. “I want to know why NIRSAL is making illegal withdrawals from my account. What was given was a household grant, so why take ₦660,000? This is illegal,” he wrote.

Efforts by Peoples Gazette to reach NIRSAL Microfinance Bank for comments via email and telephone were unsuccessful as of the time of filing this report.

The growing number of complaints has sparked public concern, with some Nigerians warning beneficiaries of the government’s new student loan initiative under the Bola Tinubu administration to be cautious, fearing they could face similar repayment challenges in the future.